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Technology Stocks : USRX
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To: Dwight E. Karlsen who wrote (7793)1/9/1997 1:03:00 PM
From: Mike Peterson   of 18024
 
Dwight,

Sorry for all the technical jargon... The RJ11 is a phone jack (the one you plug the phone line into). The DAA is the circuit that allows you to hook your modem though your RJ11 into the phone lines. The Codec is a hardware component that functions as an analog to digital converter (simplified description). This is required to convert your digital signals from the computer to analog for the phone lines and back again. These are all hardware components that you will not find standard on an MMX board. In other words for a company to have an MMX modem on board they will have to add these components.

CPQ is announcing MMX machines with non-MMX modems for a few reasons:
1. MMX modems are still in the development stages (MOT and a company called PC-TEL "I think" are somewhat close).
2. MMX modems will take a substantial amount of the computer processor (I doubt that you could run a full featured modem [V.34, DSVD, speaker phone, Telephony etc.] without bringing the processor to its knees).
3. Including an MMX modem (wired in) on a machine may very well obsolete the machine before it's time. This is a theoretical scenario... If a modem manufacturer comes out with a new major feature that cannot be flashed onto a unit (a hardware upgrade) that is incredibly desireable then the manufaturers would have to figure out what to do with their outdated inventory of "hardwired" machines. With a regular internal modem it is very easy to pull those units out and replace them with the new and improved units, then have a fire sale on the outdated modems.

I think MMX is something that will eventually become mainstream, but it is still a ways off.

I also believe that USRX will remain a strong force in this business regardless of the technology.

Mike
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